What is the difference between loan pre-approval and pre-qualification?

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Pre-approval and pre-qualification are steps ywww.cbbaker.comou can take to line up your mortgage loan before you start house hunting in Wilmington NC. They are different, so read on:

Pre-approval:

  • is actually applying for, and getting, a conditional commitment for a mortgage loan up to a specific amount of money.
  • is usually good for 60-90 days.
  • applies, even though you might not have chosen the home you will buy.
  • often requires a loan application fee.
  • gives you bargaining power, because it tells the seller you are ready to buy and able to get financing.

Pre-qualification:

  • is the result of a lender taking a cursory look at the buyer’s income, credit history and assets.
  • states the buyer probably could afford to buy up to a certain limit.
  • does not include a loan commitment.
  • tells sellers you’re serious about buying and their house is in your price range.
  • usually costs no more than the credit report fee.

Some advantages of pre-qualification and pre-approval are:

  • A pre-approval or pre-qualification can speed closing because the paperwork for the loan has already been started.
  • You will begin learning about the financing process, and any problems that might arise can be resolved early.
  • You know in advance how much you can borrow.
  • Your offer is more attractive to the seller, because the seller won’t have to guess about whether you can afford the house.

Where do you begin when it’s time to look for a new house? Start by calling or e-mailing us with your home-buying questions. We can give you an idea of how much home you can afford to buy, then you can follow up with your local lender.

Categories: Pre-Approval for Loan, Pre-Qualification, wilmington nc real estate, Wilmington NC real estate stats 2014, wilmington real estate stats

NEGOTIATE: How To Buy The Home You Love At The Price You Want

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2Found the house of your dreams? Now the negotiations begin.

The agent you’re working with can guide you through the process of making a purchase offer. You’ll want to start by learning as much as you can about how much the property is worth.

Check the comparables

Your agent has up-to-the-minute price data at hand to help you analyze any comparable properties; just ask. Although every home is unique, here’s some of what makes a home “comparable” to the one you’re considering purchasing:

same neighborhood;
same age and condition;
same size lot;
same home style–equivalent living space, number of rooms and baths;
similar terms of sale.

Follow sales price trends

Ask about recent pricing trends in the neighborhood. Specifically, what has been the average difference between listing price and sales price for recent sales of comparable homes? What is the ratio of assessed tax value to market value?

Offer what you think the house is worth

Some asking prices have built-in padding, but others are already priced to sell. You could lose a well-priced home with a low-ball bid. Remember, a lower mortgage interest rate will allow you to borrow more and pay a higher price for a home without increasing your monthly payment.

Spell out the details

Consider getting a pre-purchase appraisal and home inspection. The appraisal will give an independent valuation of the house, and the inspection will help identify any potential problems you may have overlooked. Consider including a contingency making the contract subject to a satisfactory appraisal and inspection.

Evaluate contingencies

The contract can also be contingent upon an attorney’s review, previous home sale, and acceptable mortgage loan terms, etc. Contingencies are typically used to smooth acceptance of an offer without delaying the final decision. Too many contingencies, however, weaken your bargaining position.

Know what’s important to you

Prioritize the elements of the sale on paper (“must” and “want”) and decide where you have negotiating room–what you’ll give up or accept in exchange for a concession. Items frequently negotiated include adjustments for needed or requested repairs, what personal property stays and what goes with the seller, points and closing costs, and move-in date. Knowing exactly what you want and where you are willing to bargain is your most important negotiating tool.

Put everything in the first purchase offer

If the first offer is accepted it may be too late to add anything. Include a financial statement. Do all negotiating in writing with a deadline for a response, often 48 hours. You are free to cancel an offer until it is accepted by the seller. Require that your binder or deposit be held in an escrow account with the interest credited to you.

Be Patient

Negotiating could take several days. Be patient; you won’t want to rush into one of the most important purchases you’ll ever make.

We can help

If you’d like help finding your dream home, please call or e-mail us. We’ll help with your home search and will give you all the important information we can provide to help you make the right offer for the right home.

Categories: buying a home, The Art of Negotiating, Uncategorized, wilmington nc real estate

Get The Most Bang For Your Remodeling Bucks | Wilmington NC real estate

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Get The Most Bang For Your Remodeling Bucks

Thinking about making a change to your home? Be sure your remodeling dollars are well spent.
You certainly should focus on making your home a place you (rather than some future buyer) will enjoy living in. Still, it makes sense to remodel with an eye to maximizing the return you’ll get on your remodeling costs when the time does come to sell.
Consider the following suggestions:
1. Try To Fit In
Make sure your changes are consistent with the neighborhood. Don’t improve your home’s value more than 20% above the average value of homes in your area. If three bedrooms are standard and you are adding two more, you are not likely to get a very good return on your investment. Consider moving to a larger home rather than over-improving your current one.
2. Take The Middle Path
Shy away from highly decorative (or expensive) fixtures and designs. While a black-onyx wet bar and a mirrored wall might suit your fancy, it may make your home harder to sell later on. Remember, trendy colors and styles become stale all too soon (remember “harvest gold”?). Classic styles and neutral colors, on the other hand, stand the test of time. Express your individual taste with furnishings that you can take with you when you go.
3. Invest In Popular Improvements
Renovations with the best return include changes in the kitchen or bathrooms and room additions accomplished by adding on or enclosing a porch or garage. Tour similar homes that are for sale to see what kind of renovations your neighbors have made. Take a look inside some new homes, too. Builders know what today’s buyers are looking for; you may want to incorporate a few of the latest features in your home remodeling project.
4. Look At Your Moving Timetable
Will you be moving in a year or two? If so, shy away from major projects or personalized “luxury” updates such as saunas or art studios. You could end up spending extra money to reconvert the space if your buyers don’t like the results. Don’t start renovating if you expect a short-term stay, because long-term remodeling loans will deduct cash from your equity when you sell.
5. Find A Reputable Contractor
Look for a contractor with a solid track record doing the kind of work you’re looking for. Check for proof of insurance, licensing and bonding. Ask for references and contact several. Make sure you have a contract that spells out all of the details and possible scenarios — materials, periodic payments based on progress, completion dates, etc.

More on remodeling here…

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Copyright © 2017 Wilmington NC Real Estate Guide. All rights reserved. Disclaimer: All content on this blog is my own opinion and should not be treated as fact or relied upon when purchasing or selling real estate.